Tax benefits announced in the interim budgetToday Shri Piyush Goyal, the present Finance Minister, presented the interim budget for the first quarter of 2019-20 (because this is an election year). In this budget, Shri Goyal has announced many tax benefits for the salaried class and middle-class. The major tax benefits announced/proposed are indicated below:-
- No tax for individuals having an annual income of Rs. 5 lakh.
- Standard Deduction re-started last year has been increased to Rs. 50,000/- from Rs. 40,000/-
- Individual tax-payers with gross annual income upto Rs. 6.5 lakh will not be reuired to pay any tax if they invest in Provident Funds and prescribed equities.
- Interest income upto Rs. 40,000/- in banks and post offices has been made tax-free (earlier it was Rs. 10,000/-).
- TDS for home rent has been increased to Rs. 2.4 lakhs from earlier Rs. 1.8 lakh.
- Capital gains exemption will be available for two house properties, instead of present one.
- Income tax relief on notional rent from unsold houses has been extended to two years from present one year.
- Income Tax returns will be processed with 24 hours and refunds will be paid immediately.
I will try to indicate other benefits announced for other sections in my subsequent posts or articles.